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China Revises PBOC Law

China is revising the PBOC law to curb financial risks and strengthen its macroprudential framework

601398.CN601988.CNFXI

**Insight: Pointing to tighter system-wide financial risk monitoring rather than a near-term growth-stimulus headline.

Follows a clear recent policy direction: PBOC Governor Pan Gongsheng last week outlined new financial-policy measures including a possible macroprudential liquidity-support tool for non-bank financial institutions, and China has been advancing financial-stability legislation since at least 2024. - - In line with expectations for stronger financial regulation and risk prevention, especially around property, local-government debt, small banks and non-bank finance, rather than a surprise easing signal.